Posted on: 26th Jul, 2008 05:59 pm
Me: Divorced mom with 4 kids. Deadbeat dad stopped paying court ordered child support back in November 2007. I was laid off from teaching job and making less money. I live in SW Florida.
Situation: I have two homes. One I have been trying to sell since 2006 and one that I currently live in, but cannot afford anymore.
Home #1: I have two loans, a first which is a Neg Am Pick-N-Pay loan with low payments for the first five years. Next year is year five. I started at $188K and the loan is now $196K because I am upside down with the neg am payments. I also have a HELOC for $143K. Totals around $340K and home is for sale for $219K with no offers in sight! I have not paid the first or HELOC since January 2008. No renters, I take care of the yard and pool while empty to keep the neighbors happy. There has been nothing filed with the County as far as Lis Pendens or Foreclosure notices. I guess they are backlogged. HELOC is now "CHARGED OFF" as of June 2008.
Home #2: I live in this home with my kids, it is homesteaded, I owe $298K with IO 30 yr fixed loan. I have managed to pay this mortgage until this month, July 2008. Cannot afford to make payments and pay HOI due too. Previously had the home listed for sale $400K, no offers and prices in the area continue to decline. I probably could sell for around $315K tomorrow-- I think!
Credit: I used to have a 765 credit score until I stopped making my mortgage payments. I have credit card debts close to $75K, car lease payments, college loan payments, etc. I just found out that my HELOC on the first home was charged off at the 120 day mark, so I am not sure how that is going to now effect any short sale possibilities that I had as I have the house listed at the BPO price they suggested I target, $219K. I am starting to get notices from my credit card companies that they are reducing my credit lines, so the end is near for my living on credit cards to supplement my meanial income.
Income: My current pay is $36000 a year and I used to receive $36000 a year in alimony & child support which stopped last November when ex started a new family. This is the first year my youngest can go to Kindergarden, so I will be saving $500 a month in child care that I used to pay. I was a teacher, but laid off after the 06-07 school year. I recently got licensed to sell real estate to try and supplement my income in the future.
Options: I don't know what to do. I am sort of in a trance.
Do I sell my current home? Which I will probably break even at closing depending on the sales price obtained.
If I sell my current home, I can move back into my old home if the first mortgage co will let me modify that mortgage into an affordable payment, otherwise, I will not be able to afford that once the mortgage adjusts next year.
If I am living in my old home, I don't think I have to make payments to the HELOC company, but I will still have a lien on the property making it unsaleable. Will the lien ever become removeable without payment or upon sale? The home has not sold in 2 years of trying, it is small, only 1600 sf and does not have the popular granite and wood floors everyone is hooked on today!
Should I just file bankruptcy and rent? I don't see how I can get out of the mess I am in with the credit card debt, two homes and a car lease.
Should I try to stay in my current home, rent out the old home (I would be facing a $250 a month deficit after paying insurance, taxes)?
I don't know if the mortgage company will even try to modify my loan since I don't live in the home, plus I am not paying the loan and cannot afford to pay this loan on the old home. If they could get the payment low enough to get it rented out, I am still faced with getting a good renter in there to keep the home up.
It is just depressing thinking about it, but I know I need to do something, but I am just frozen in fear of the unknown. :oops: :cry:
I feel like a failure and tried to maintain everything after the divorce and then the non-receipt of the court ordered support, but everything is just getting worse. At least I do have a job around here which is pretty good considering the economy around here.
HELP!
Situation: I have two homes. One I have been trying to sell since 2006 and one that I currently live in, but cannot afford anymore.
Home #1: I have two loans, a first which is a Neg Am Pick-N-Pay loan with low payments for the first five years. Next year is year five. I started at $188K and the loan is now $196K because I am upside down with the neg am payments. I also have a HELOC for $143K. Totals around $340K and home is for sale for $219K with no offers in sight! I have not paid the first or HELOC since January 2008. No renters, I take care of the yard and pool while empty to keep the neighbors happy. There has been nothing filed with the County as far as Lis Pendens or Foreclosure notices. I guess they are backlogged. HELOC is now "CHARGED OFF" as of June 2008.
Home #2: I live in this home with my kids, it is homesteaded, I owe $298K with IO 30 yr fixed loan. I have managed to pay this mortgage until this month, July 2008. Cannot afford to make payments and pay HOI due too. Previously had the home listed for sale $400K, no offers and prices in the area continue to decline. I probably could sell for around $315K tomorrow-- I think!
Credit: I used to have a 765 credit score until I stopped making my mortgage payments. I have credit card debts close to $75K, car lease payments, college loan payments, etc. I just found out that my HELOC on the first home was charged off at the 120 day mark, so I am not sure how that is going to now effect any short sale possibilities that I had as I have the house listed at the BPO price they suggested I target, $219K. I am starting to get notices from my credit card companies that they are reducing my credit lines, so the end is near for my living on credit cards to supplement my meanial income.
Income: My current pay is $36000 a year and I used to receive $36000 a year in alimony & child support which stopped last November when ex started a new family. This is the first year my youngest can go to Kindergarden, so I will be saving $500 a month in child care that I used to pay. I was a teacher, but laid off after the 06-07 school year. I recently got licensed to sell real estate to try and supplement my income in the future.
Options: I don't know what to do. I am sort of in a trance.
Do I sell my current home? Which I will probably break even at closing depending on the sales price obtained.
If I sell my current home, I can move back into my old home if the first mortgage co will let me modify that mortgage into an affordable payment, otherwise, I will not be able to afford that once the mortgage adjusts next year.
If I am living in my old home, I don't think I have to make payments to the HELOC company, but I will still have a lien on the property making it unsaleable. Will the lien ever become removeable without payment or upon sale? The home has not sold in 2 years of trying, it is small, only 1600 sf and does not have the popular granite and wood floors everyone is hooked on today!
Should I just file bankruptcy and rent? I don't see how I can get out of the mess I am in with the credit card debt, two homes and a car lease.
Should I try to stay in my current home, rent out the old home (I would be facing a $250 a month deficit after paying insurance, taxes)?
I don't know if the mortgage company will even try to modify my loan since I don't live in the home, plus I am not paying the loan and cannot afford to pay this loan on the old home. If they could get the payment low enough to get it rented out, I am still faced with getting a good renter in there to keep the home up.
It is just depressing thinking about it, but I know I need to do something, but I am just frozen in fear of the unknown. :oops: :cry:
I feel like a failure and tried to maintain everything after the divorce and then the non-receipt of the court ordered support, but everything is just getting worse. At least I do have a job around here which is pretty good considering the economy around here.
HELP!
you answered your own question. you cant sell the first, so you have to sell the second. the banks will bend over backwards for loan modification if you are in what they call Eminent Failure or something like that. My company has a real estate business opportunity that we just started.
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Welcome peaches2oranges.
I feel renting out is a good option to choose. But it doesn't help you then you can file chapter13. So that you can work out an affordable repayment plan under chapter 13. Take a look at the article on Chapter13 on http://www.mortgagefit.com/bankruptcy/chapter13.html
Let me know if you have any further queries.
I feel renting out is a good option to choose. But it doesn't help you then you can file chapter13. So that you can work out an affordable repayment plan under chapter 13. Take a look at the article on Chapter13 on http://www.mortgagefit.com/bankruptcy/chapter13.html
Let me know if you have any further queries.